Gold Technical Report: Gold moved up again yesterday, after a dull session earlier, holding support near 10 days Exponential Moving Average. Recently it witnessed volatile movements when it crossed above 2100 mark upside and also drifted down below 2050 at the close on the same day. The short term Stochastics Oscillator is at 41 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 58 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also moved parallelly, as it opened near support of 10 days Exponential Moving Average and climbed up. Last week it displayed robust upmove as it forcefully crossed above all 50,100 and 200 days Exponential Moving Average on closing basis in a single day. It has started decline earlier on massive profit booking after it hit 25.88 intra day high which now becomes the next target if rally sustains. The Short term Stochastics Oscillator is at 47 and Relative Strength Index near 54.
Fundamental Report: Gold feeling jittery both sides amidst kicking off positions rapidly as the holiday season beginning in just a few days, we can anticipate lower volume begin to come in to the markets. Although gold futures traded to a lower low and a lower high yesterday, the net result was a gain of $7.40. Today we are seeing the follow-through buying. While dollar weakness was a prevalent component in precious metals gains this week, the geopolitical tensions that exist are also a major component, ratcheting up the appeal for the haven component of precious metals pricing. Traders are also factoring in a more dovish Federal Reserve that was exhibited during the last FOMC meeting this year with Chairman Powell not only addressing the question of rate cuts but also summarizing the SEP (Summary of Economic Projections) in which members voted upon their anticipated interest rate level in 2024, 25, and 26. During the next three years, Federal Reserve members anticipate interest rate levels to move lower at a steady pace. While market activity is expected to slow down heading into the Christmas holiday, key economic reports such as the U.S. Core PCE Price Index, Final GDP, and consumer sentiment data, as well as the U.K.’s CPI and Retail Sales figures, are anticipated to provide further direction. In addition to the Fed, the Bank of Japan’s policy meeting this week, where a shift from negative interest rates is on the table, is drawing attention. U.S. economic indicators, particularly the core PCE index report, are watched for clues on inflation trends and potential Fed actions. Gold prices are currently reflecting the market’s balancing act between the Fed’s dovish signals, fluctuating Treasury yields, and a shifting dollar. These factors, coupled with global central bank policies and upcoming economic reports, are key to determining gold’s short-term movement.